The Columbus, Ohio-based retailer is pivoting to a “consumer-first formula” technique centred round upgraded formulations, extra disciplined advertising and fewer promotions.
The reset issues as India is rising as one of many firm’s fastest-growing and best-performing markets and can be changing into a testing floor for how the model evolves its retail mannequin. India now ranks amongst Bath & Body Works’ high 5 worldwide markets by progress.
“We’re seeing sturdy engagement throughout shops (in India), digital marketplaces and even fast commerce, which provides us confidence as we evolve the model and introduce extra innovation,” mentioned Tony Garrison, international vp at Bath & Body Works, in an interview with Mint.
The perfume maker entered India in 2018 in partnership with Dubai-based Attire Group and has since expanded to about 50 shops throughout main metros, whereas additionally constructing an internet presence by platforms reminiscent of Nykaa, Myntra and Amazon.
Attire Group brings over 80 international manufacturers to India, together with Victoria’s Secret, Charles & Keith, Aldo, Crocs, Tim Hortons.
“We’re studying a lot from how the Indian shopper retailers throughout platforms, particularly the velocity and comfort expectations,” he mentioned. “It’s serving to us assume in a different way about assortment, pack sizes and the way we present up digitally.”
At the same time as discretionary spending softened, the model’s franchise associate, Attire Group, delivered double-digit gross sales progress in India and excessive single-digit comparable-store beneficial properties in FY25. It reported a 26% year-on-year leap in FY25 income to ₹1,118 crore and a web revenue of ₹20.5 crore, reversing a loss within the earlier 12 months.
Globally, Bath & Body Works’ earnings mirror a gentle shopper demand in addition to margin pressures. Its income declined 1% to $1.59 billion within the third quarter of FY25, whereas web revenue fell 27% year-on-year to $77 million. The corporate has three markets in income contribution – US, Canada and Worldwide.
Reviving the perfume engine
Whereas legacy scents reminiscent of Japanese Cherry Blossom, Champagne Toast and Thousand Needs stay international blockbusters, the corporate admits it hasn’t produced sufficient new hits at a comparable scale in recent times.
“Japanese Cherry Blossom is a $250 million perfume,” Garrison mentioned. “I believe we haven’t completed the very best job of maintaining with a few of the perfume traits. We haven’t completed a lot of innovation, and that’s what you’re going to see this 12 months. That is a huge change 12 months for us.”
The corporate plans to raise its home-fragrance portfolio, bringing in additional premium candle collections, gift-ready packaging and deeper, extra subtle scent profiles.
The broader aim is to encourage buyers to commerce up inside the model slightly than wait for markdowns. “We wish prospects to see the worth within the product itself, the perfume high quality, the substances, the expertise, not simply the promotion,” Garrison mentioned.
Bath & Body Works additionally plans to introduce upgraded body-care strains in India, with a stronger focus on substances and dermatology-led claims.
New retail codecs
India can be getting used as a take a look at market for new retail codecs. Later this 12 months, the corporate and Attire Group plan to pilot a new, smaller “neighbourhood retailer” format of roughly 500 sq. toes in choose non-metro markets.
These shops will focus closely on core body-care strains and hero fragrances, whereas creating a extra discovery-led atmosphere for first-time buyers. If profitable, the format may inform retailer methods in different components of the world.
India can be rising as a key market in testing how far that premiumisation can go. Regardless of broader warning in discretionary spending, Garrison mentioned the corporate has not seen a slowdown regionally.
“India has truly been one in every of our strongest markets within the post-Covid interval,” he mentioned. “Even when shoppers are cautious, they nonetheless spend on small luxuries that make them really feel good.” That dynamic positions Bath & Body Works squarely within the “reasonably priced indulgence” candy spot, usually benefiting when buyers reduce from higher-priced magnificence or luxurious purchases.
Macroeconomic and coverage components may additional help the enterprise, he added. A stronger rupee helps franchise associate Attire Group handle import prices extra successfully, whereas a potential commerce settlement between India and key international markets may ease regulatory processes and velocity up shipments. Quicker imports translate into higher stock turns and brisker product on cabinets, a crucial benefit in a class pushed by novelty and seasonal drops.
What consultants say
Retail consultants warning that Bath & Body Works’ reset in India gained’t be with out challenges, particularly after years of promotion-led progress.
“It’s a self-inflicted wound,” mentioned Devangshu Dutta, founding father of Third Eyesight, a consulting agency. “Manufacturers pitch excessive, and when volumes don’t come by, they inevitably fall again on discounting. Indian prospects can wait for costs to be proper, which results in a very massive variety of gross sales occurring on the finish of the season.”
Dutta mentioned that the non-public care market has develop into intensely crowded, with a “humongous quantity of product range”, making model readability crucial.
“In the event you’re not clear about what you’re as a model, you simply develop into one other model or a commodity,” Dutta mentioned, noting that Indian shoppers at the moment are much more conscious of worldwide worth propositions.
Whereas Bath & Body Works is leaning into fast commerce and smaller neighbourhood shops, Dutta cautioned that premium manufacturers nonetheless want bigger codecs to construct experience-led differentiation. “Fast commerce is a very curious atmosphere. Prospects are in a in search of mode, not a shopping mode, so model discovery is a enormous problem,” he mentioned. “Neighbourhood shops could be spokes, however you continue to want the hub -the massive retailer to speak the model expertise.
Key Takeaways
- Bath & Body Works is shifting to a ‘consumer-first formula’ to reinforce model engagement.
- The reset issues as India is rising as one of many firm’s fastest-growing and best-performing markets
- Regardless of competitors, India presents a sturdy progress alternative for Bath & Body Works, pushed by shopper demand for reasonably priced luxurious.
- A stronger rupee helps franchise associate Attire Group handle import prices extra successfully
Race intensifies
The turnaround plan comes at a time when Bath & Body Works rivals, together with The Body Store and Forest Necessities, are additionally bracing to get a share of the Indian shopper’s pockets.
The Body Store, plans to attain ₹1,100 crore in income in India inside the subsequent three to 5 years, buoyed by the strategic backing of Auréa Group, which acquired the model final 12 months.
India’s perfume market was valued at $1.0 billion in 2024 and is claimed to develop at a 13.9% CAGR to $3.23 billion by 2033, based on market analysis agency IIMARC Group.
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